Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

What is a collection of stocks used to track the performance of sectors of the market called?

A bond

A derivative

A mutual fund

An index

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Understand the concept of an index: In financial accounting and investing, an index is a collection of stocks or other securities that are grouped together to represent the performance of a specific sector, market, or economy.

Recognize the purpose of an index: It is used as a benchmark to measure the performance of a particular segment of the market, such as technology stocks, energy stocks, or the overall market.

Differentiate an index from other financial instruments: A bond is a fixed-income security, a derivative is a financial contract whose value is derived from an underlying asset, and a mutual fund is a pooled investment vehicle. None of these are specifically designed to track market sectors like an index.

Identify examples of indices: Common examples include the S&P 500, which tracks the performance of 500 large-cap U.S. companies, and the NASDAQ Composite, which focuses on technology and growth-oriented stocks.

Apply this knowledge to the question: Based on the definition and purpose of an index, the correct answer to the question is 'An index,' as it is specifically designed to track the performance of sectors of the market.